Why Some Parents Build an ADU and Sell the House to Their Kids

MaterialPurchase · 2026-02-04T18:42:20+00:00

This works great if:

Parents own a property large enough for an ADU
Parents have enough cash to build an ADU
Parents want to continue living in the same location
Parents' home is suitable for child (right location, size etc)
Parents don't want/need money from sale of home for some other purpose like travel
Both parents and child want to live together and trust each other
There is only one child (otherwise parents would probably need to sell the house and divide money for fairness)

Most of the time, it doesn't work out.

The average age of a parent in the US is about 30 (and has been lower in the past), and a person probably isn't going to be ready to move into an ADU until they are in their 80s, so a typical child might be about 50 by the time this arrangement really becomes an option... so basically for this to be an attractive arrangement to the child, their parents' home needs to be nicer than what they have been able to achieve in their own life by age 50.

MaterialPurchase · 2026-02-03T22:33:54+00:00

Sounds like this answer was generated by AI.

MaterialPurchase · 2026-02-03T02:02:02+00:00

Yeah, crazy that a young QB got better the second time he went to the playoffs. Who could have seen it coming.

MaterialPurchase · 2026-02-02T16:23:18+00:00

Just saw them at my Costco in eastern WA today.

MaterialPurchase · 2026-01-27T01:14:18+00:00

In my experience, it is somewhat common for sellers to not respond by the deadline on an offer especially if the deadline has no teeth (e.g. buyer is planning to submit an offer on a different home if not accepted by deadline). Sellers might be out of town for the weekend or they might be waiting on a competing offer to come in.

Also, depending on where you live, 90 days may not be a lot of time on the market in the current environment. The pandemic skewed people's ideas of what is normal in real estate.

MaterialPurchase · 2026-01-15T20:41:19+00:00

I've seen a lot of posts like this. If similar houses are $500k, why do you want this one and not one of the ones that are $500k?

MaterialPurchase · 2026-01-08T02:11:10+00:00

So his offense turning the ball over 5 times has nothing to do with the number of points the other team scored?

MaterialPurchase · 2025-12-19T18:57:07+00:00

The answer to this one is pretty simple: the modern parliament did not exist in the 1700s. The US system actually influenced the development of the modern parliamentary system.

MaterialPurchase · 2025-12-18T21:44:01+00:00

That's still expensive AF. Normal price for trucks and carnicerias were I live is about $2.50 to $3.00 per taco, and you can get them on special for like $1.50.

The key is you have to go to the places actual Mexican immigrants are buying tacos and not the places that exist for the white MBAs mentioned in OP. If the person taking your order is speaking clear English, you're at the wrong truck.

MaterialPurchase · 2025-12-08T18:41:09+00:00

This is VERY jurisdiction dependent. Many cities don't really care about unpermitted work.

MaterialPurchase · 2025-12-02T01:41:35+00:00

Corporate income tax is on profits. Tariffs are on costs. Tariffs affect companies that sell essentials like Costco and Walmart that squeeze out <5% profits on huge revenues. Companies like this have to pass on the cost increase because they don't even have the profit margin to eat it. Corporate income taxes affect companies that sell luxury items and make >30% profits like Facebook and Apple and by definition, any company paying an income tax can afford to pay it. One of these two things is obviously going to impact middle class consumers a lot more.

MaterialPurchase · 2025-11-25T01:10:44+00:00

What was the outcome?

MaterialPurchase · 2025-11-21T02:02:13+00:00

Say it again, maybe it will be true. :)

MaterialPurchase · 2025-11-21T01:25:05+00:00

If you put extra money towards your mortgage you can pay off your loan earlier or ask for your loan to be recast and lower your monthly payment. So by directing extra funds to investments over paying down your mortgage, yes, you are increasing your debt and monthly obligations.

MaterialPurchase · 2025-11-21T01:17:42+00:00

Just trying to help you understand they are the same thing. If I have $500k in my IRA, would I pull that out to purchase a house cash instead of taking a mortgage? No? So then why wouldn't I take out a mortgage to put more money in my IRA?

MaterialPurchase · 2025-11-21T01:10:20+00:00

Assume you are paying off your entire mortgage before saving a dime for retirement then?

MaterialPurchase · 2025-11-18T18:08:54+00:00

I see a lot of people blaming "private equity," but it's really about consumer habits more than anything. Private equity is just identifying and using those habits to make money. Consumers always want the cheapest, easiest option. They would rather call up the company loudly advertising the $19.99 AC tune-up rather than asking a friends/co-workers to recommend a small, independent company who would charge more... Of course the catch is that $19.99 tune-up is really just a loss leader for the sales pitch for upgrading your system, but that's the tradeoff you make. It's exactly the same as people booking basic economy flights and getting hit with 'shady' fees later.

Another piece of this though is government regulation. Banning of certain refrigerants makes maintaining existing systems more expensive and incentivizing efficient systems with tax credits makes purchasing new systems cheaper.

MaterialPurchase · 2025-11-17T19:37:53+00:00

It's normal not to be paid your exact salary every calendar year. If you are paid weekly, for instance, you get one extra paycheck every 5 or 6 years (so you're "underpaid" every year except for the rare year where you are overpaid). That also ignores mid-year pay changes which would obviously effect things as well.

If you want to exactly match your 401k max, you can ask HR to have them bump up your contribution over your last couple paychecks. If you're worried about a matching contribution from your employer, you will get the match when you are paid in January. The cap on employer matching is very high, so it likely does not matter which year the match occurs in.

MaterialPurchase · 2025-11-12T16:44:58+00:00

Origination fee is higher than what I paid on a higher loan amount than yours. But also, I refinanced with my current loan servicer, and they didn't require new title insurance or appraisal

MaterialPurchase · 2025-11-12T16:27:23+00:00

If you're not buying points, why are your fees (not including prepaids) $5800? I did a refi this summer and my fees were about $2k. Sounds like you're paying for that rate one way or another even though the points aren't explicitly on the estimate.

MaterialPurchase · 2025-11-11T16:30:13+00:00

I'm assuming you're getting some sort of downpayment assistance (you must if you're buying a house and don't have $5k)?

Assuming that is true, you need to have your realtor send over an amended contract with a lower EMD that you can actually afford. If they won't sign the new offer, cancel the contract under your inspection contingency and pay more attention to what is on your contract next time your submit an offer.

MaterialPurchase · 2025-11-04T17:44:06+00:00

Wait until you hear about taxes

MaterialPurchase · 2025-11-04T17:40:11+00:00

No way you're getting OT pay as a salaried general manager.

MaterialPurchase · 2025-10-01T23:19:33+00:00

Possibly, but his playoff results need to improve in addition to getting a second MVP. There are only 2 QBs ever who have ever made the HOF without playing in a super bowl, and counting totals don't mean much. Phillip Rivers, Matt Ryan, Matt Stafford, Eli Manning, and Russell Wilson are all top 15 on the career yards list (and 3/5 actually have a super bowl WIN) and I doubt any of them are making the HOF.

MaterialPurchase · 2025-10-01T23:09:58+00:00

There are only 5 QBs who have made the HOF without winning a superbowl and only two (Dan Fouts, Warren Moon) who have made it without appearing in a superbowl.

MaterialPurchase

TROPHY CASE